Canada Sees Opportunity Amid Global Energy Upheaval

Canada's government is refocusing on its natural resources as energy demand surges due to disruptions in global supplies. According to Royal Bank of Canada (RBC) CEO Dave McKay, this shift will benefit Canada. McKay pointed out that Prime Minister Mark Carney has put a renewed emphasis on leveraging the country's resources.

McKay stated that 'Canada is very much on a mission to go leverage our resources again' after a decade of ignoring them. He noted that demand for Canadian liquefied natural gas and minerals is strong in Asia and Europe, with the world perceiving this as an unprecedented opportunity.

The global energy market has been impacted by the US and Israeli attacks on Iran, causing oil prices to rise over 50% this year. The region's main export route has been closed due to the war, leading to a decrease in production from countries like Saudi Arabia, Iraq, the United Arab Emirates, and Kuwait.

RBC posted record earnings in fiscal 2025, with provisions for possible loan losses slightly higher than expected in the first quarter. McKay also mentioned that RBC is seeing some credit risk, specifically with subprime loans on both sides of the US-Canada border.